Vancouver Real Estate Commission Rates from Mike Stewart on Vimeo.
Mike Stewart’s Commission Rate for Sellers of Vancouver Homes Explained!
My name is Mike Stewart and I am an award winning residential Real Estate Agent in Vancouver, British Columbia, Canada and here is an explanation and breakdown of the Real Estate Commissions I charge Sellers to assist them in the sale of their properties.
When I am hired (by way of a Listing Contract which specifies the Commission) to sell a property I am referred to as the Listing Agent.
In Vancouver, Buyers generally DO NOT pay commissions to their real estate agents!
Commissions I Charge Real Estate Sellers in Vancouver:
I charge a Seller a real estate commission in the amount of: 7% of the 1st $100,000 and 2.5% of the balance.
Want to Calculate my Real Estate Commission Fees plus taxes as well as net proceeds of the sale of Your Property?
Check out this great Vancouver Real Estate Commission Calculator.
When I get Paid:
This real estate commission is ONLY payable upon of the Completion of the Sale of the Sellers property at the BC Land Titles Office.
What it Covers:
This amount covers all the costs associated with listing and marketing the property, full offer negotiation support and guidance for the Sellers, as well as full support through to the Completion of the Sale and beyond.
I Cooperate with Buyers Agents and Offer HALF of the Total Real Estate Commission to Buyers Agents!
I offer around half of the above real estate commission (about 48%) to a Buyers Agent who’s Buyers bring my Seller an accepted offer that Completes at the Land Titles Office here in BC. The Buyers Agent must disclose in writing to their Buyer any and all commissions they earn in the transaction.
My Real Estate Commission is not a Vancouver Real Estate Standard and is Negotiable.
According to the Federal Governments Competition Act I am required to say that the real estate commissions I charge a Seller are negotiable.
Furthermore, according to the Competition Act, I cannot say that my commission fee is a standard commission or create the perception there is a standard commission. The commission above is what I alone charge and I am open to offers on commission.
Thinking of Selling in Vancouver? Call 604-763-3136 or Email Me to discuss how I can help YOU!
Mike Stewart’s Vancouver Real Estate Commission Breakdown with HST
$300,000 Sale Price x 7% on the 1st $100K & 2.5% of the Balance = $12,000 x HST (12%) = $13440
$400,000 Sale Price x 7% on the 1st $100K & 2.5% of the Balance = $14,500 x HST (12%) = $16240
$500,000 Sale Price x 7% on the 1st $100K & 2.5% of the Balance = $17,000 x HST (12%) = $19040
$600,000 Sale Price x 7% on the 1st $100K & 2.5% of the Balance = $19,500 x HST (12%) = $21840
$700,000 Sale Price x 7% on the 1st $100K & 2.5% of the Balance = $22,000 x HST (12%) = $24640
$800,000 Sale Price x 7% on the 1st $100K & 2.5% of the Balance = $24,500 x HST (12%) = $27440
$900,000 Sale Price x 7% on the 1st $100K & 2.5% of the Balance = $27,000 x HST (12%) = $30240
$1,000,000 Sale Price x 7% on the 1st $100K & 2.5% of the Balance = $29,500 x HST (12%) = $33040
$1,250,000 Sale Price x 7% on the 1st $100K & 2.5% of the Balance = $35,750 x HST (12%) = $40400
$1,500,000 Sale Price x 7% on the 1st $100K & 2.5% of the Balance = $42,000 x HST (12%) = $47040
$1,750,000 Sale Price x 7% on the 1st $100K & 2.5% of the Balance = $48,250 x HST (12%) = $54040
$2,000,000 Sale Price x 7% on the 1st $100K & 2.5% of the Balance = $54500 x HST (12%) = $61040
$2,500,000 Sale Price x 7% on the 1st $100K & 2.5% of the Balance = $67,000 x HST (12%) = $75040
$3,000,000 Sale Price x 7% on the 1st $100K & 2.5% of the Balance = $79,500 x HST (12%) = $89040
I strongly encourage comments! Thank you!
This property SOLD on May 13th, 2013 for $1,578,000. Contact Mike for all the details: 604-763-3136.
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I think real estate fees are usurous and way above what you guys actually do on a straight foreward sale. Would definitely use 1% or 2% Realty companies as they do just as good a job at a more realistic fee. Haven’t seen any poor realtors yet!
Hi Dorothy,
Good to hear from you.
How many properties have you sold?
How many properties have you sold with discount Realtors?
How many with full service Realtors?
In real estate, like anything else, you get what you pay for.
I am a full service Realtor and have not needed to discount my services in order to get business.
Who would you trust more to get you results?
A Realtor who needs to give a large discount to induce you to work with them or a Realtor who doesn’t need to discount?
Remember, you get what you pay for…
What are your thoughts?
I have to agree; you get what you pay for. Have just had to re-list my home with a well known local Realtor, as the 1% Agent was unable to get the home sold in 120 days. Not only that, after the first few weeks we had little to know interest in our home, while other local homes similarly priced were selling. When we requested the agent do some print advertising, prepare some marketing pieces, I was told they couldn’t as the revenue from the commission didn’t cover these expenses, but we would have to pay for these expenses directly. Too make matters worse, while trying to save on commissions, the market vale of our home has softened; Lord knows how much that has cost us! In the few weeks with Re/Max we’ve had 4 times the number of people through the home and several offers are pending. On top of all this, the Agent is far more professional and experienced. We’ve learned our lesson. You do get what you pay for!
Hi Mark,
Good to hear from you and thank you very much for taking the time to share your experiences.
As a licensed Realtor, there are restrictions I can say about my colleague’s business models, particularly the discount brokerage model.
Discount Commission Brokerages have a very small market share in the Vancouver real estate market.
In my opinion, this is because discounted commissions are not effective in getting properties sold for the highest price in the shortest amount of time.
The commission structure I use is, in my experience, is the most effective in getting a property sold in the Vancouver real estate market for the most money in the shortest amount of time.
This structure allows me to invest the money needed to get my listings the exposure required to stand out from the crowd. Properties that look good and presented well, sell for more sooner.
In my opinion, the structure we use also provides the financial incentive to get and keep the attention of busy buyers agents, who actually have the buyers.
You bring up a good point about time.
Had you originally listed your property with a top producing full service Realtor, your property probably would have sold sooner for more money, thus considerably offsetting the savings you would have had by working with a discount real estate agent.
When shopping for a Realtor, I think it best to look at local results, local knowledge, and experience over the cheapest option available especially with the largest financial transaction most people will make in their lives.
Experience and results don’t come cheap, but nor is inexperience and the inability to produce.
I’d love to hear your thoughts!
Thanks again Mark!
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Why is that when I contact the listing agent with BASIC questions from mls.ca, the first question they ask is if I’m an agent or have an agent?
Then when I say “yes, I have an agent,” they won’t answer my questions and ask to contact my realtor or ask my realtor to contact him/her.
Can you please explain to me how this works? Is this a commission thing?
If I said “no” to having an agnet but then bring in an agent later is that not allowed?
What if the agent never asked me if i had an agent, we have a long conversation and then I bring in an agent? Am I somehow the listing agent’s client and my agent won’t get a commission?
How is the listing agent looking out for the seller’s best interest if he/she doesn’t answer a potential buyer’s question even though I have an agent? Is there something we can do about that, like report to the real estate board or contact the seller directly?
This is so confusing and frustrating. I gut feeling is it has something to do with commission splitting.
Hi Sara,
Good to hear from you and thank you very much for taking the time to comment!
There are three reasons a listing agent will do this:
1) If you are working with a Buyers Agent, this Realtor gets paid to answer these questions for you because of the commission split. A good Buyers Agent should be able to answer most of the questions you may have about properties in the area you are looking and if they don’t its their job to find out for you.
Sellers Agents or Listing Agents don’t want to do the Buyers Agents job for them and not get paid.
2) When you decide to work with a particular Buyers Agent you enter into an Agency Relationship. If you call a Sellers Agent or a Listing Agent, they want to know if you have such a relationship. They want to know this so that they don’t inadvertently enter into an agency relationship with you or interfere with the Agency Relationship you are in.
3) if you are not working with a Realtor and you contact a Sellers Agent, they may want to see if you want to work with them as your Buyers Agent.
I would suggest that if you are working with a Buyers Agent, use them for what they are for. Among other things to answer your questions and help you with the process of buying a property.
What are your thoughts?
Hi Mike,
Thanks for the reply. Here are my comments:
1) What is the purpose of asking a user to contact the listing agent on the mls website, if you’re not going to give an answer?
2) Sometimes people like to be more involved, is that not allowed? The listing information on the website is not consistent from listing to listing. Some are missing basic information, like lot size or is this listing still for sale.
a) Is it really that much work to ask for that information?
b) What is the difference between me asking or my agent asking for that information?
3) “Sellers Agents or Listing Agents don’t want to do the Buyers Agents job for them and not get paid.” I understand for more involved work, like the negotiations, but a simple question?
4) What kind of interference in the agency relationship can the seller agent do if he/she didn’t know the buyer had a buyer agent?
5) If I’m not working with a Realtor and I contact a Sellers Agent, and later on I realized that this agent is not right for me and no contract was signed, can I get someone else to be my agent?
To me, if the seller agent doesn’t want to answer basic questions, then I’m under the impression that the seller or the agent is not serious in selling. If I was the seller, and I find out that my seller agent was doing this, that would not be in my best interest as you’re potentially turning away a potential buyer. ESPECIALLY, if I haven’t been getting offers. As a buyer, I feel obligated to tell the seller that their agent is doing this.
Hi Sara,
Good to hear from you and thank you for the response.
Please see my answers below:
1) What is the purpose of asking a user to contact the listing agent on the mls website, if you’re not going to give an answer?
Different Realtors handle this differently. I can’t comment on how other people run their businesses.
What I can do is comment on how I approach it. If someone calls me with simple questions usually I am fine with answering those questions if they are not overly time consuming.
What gets challenging is when you have people calling who have very little understanding of the process of buying and selling properties calling and asking questions that can be easily and rightfully answered by their Buyers Agents.
These people can take up a lot of my time and it is very frustrating to be told that they are working with a Realtor after spending an extended amount of time going over very basic concepts. This is a waste of our time and these Buyers should be asking the people they have hired to help them buy a property.
2) Sometimes people like to be more involved, is that not allowed? The listing information on the website is not consistent from listing to listing. Some are missing basic information, like lot size or is this listing still for sale.
You are free to be as involved as you please, but Sellers Agents also have the right to have control over their time.
a) Is it really that much work to ask for that information? It depends.
b) What is the difference between me asking or my agent asking for that information?
If you have hired a qualified Buyers Agent, they should know the answer.
3) “Sellers Agents or Listing Agents don’t want to do the Buyers Agents job for them and not get paid.” I understand for more involved work, like the negotiations, but a simple question?
What may seem like a simple question to you may have implications that you are not aware of also, if its so simple, shouldn’t your Buyers Agent be able to answer it?
4) What kind of interference in the agency relationship can the seller agent do if he/she didn’t know the buyer had a buyer agent?
There is an element of regulatory risk for Sellers Agents having too close a relationship with another Realtors clients.
5) If I’m not working with a Realtor and I contact a Sellers Agent, and later on I realized that this agent is not right for me and no contract was signed, can I get someone else to be my agent?
You can always hire a Realtor at any time.
To me, if the seller agent doesn’t want to answer basic questions, then I’m under the impression that the seller or the agent is not serious in selling. If I was the seller, and I find out that my seller agent was doing this, that would not be in my best interest as you’re potentially turning away a potential buyer. ESPECIALLY, if I haven’t been getting offers. As a buyer, I feel obligated to tell the seller that their agent is doing this.
If you’re unhappy with the behaviour of a Realtor, it would be advisable to contact the Real Estate Board of wherever this person is licensed.
What are your thoughts?
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